Cable weakened in European trading, following downbeat UK data which showed Composite and Services PMI’s dropping to its record lows in March (Composite 36.0 from 53.0 and Services 34.5 from 53.2) which showed that negative impact to the UK economy from pandemic is strengthening.
Fresh weakness is pressuring the floor of five-day congestion and shifting near-term focus lower.
Daily indicators point to the downside (stochastic reversed from oversold zone and momentum is breaking into negative territory, adding to signals that consolidation period might be over and bears are regaining control.
Close below 1.2242/17 (range low / 20DMA) is needed to confirm reversal and signal formation of lower platform at 1.2485.
Res: 1.2330, 1.2407, 1.2443, 1.2485
Sup: 1.2242, 1.2217, 1.2161, 1.2131
